Verizon Earnings Up 31 Percent

EmploymentCrossing.com New York’s Verizon Communications reports that earnings rose 31 percent in the third quarter as its wireless division did better than expected, while its traditional phone business continued to decline. The country's second largest telecommunications company after AT&T earned $1.67 billion, or 59 cents per share. Revenue rose 4.1 percent to $24.7 billion. Excluding charges for job cuts and merger costs, Verizon earned 66 cents per share, matching the average estimate of analysts polled by Thomson Reuters. They were expecting $24.52 billion in revenue. Chief Executive Ivan Seidenberg said business was holding up well despite the economic turmoil, but said it would have an effect in the current quarter. "For the Christmas season, consumer spending will be somewhat lighter, and business spending will be somewhat curtailed," he said. The new forecast indicates fourth-quarter earnings of 62 cents per share, falling below the 65 cents per share analysts are expecting. Investors, however, found Verizon's results reassuring, sending shares up $2.53, or 10.1 percent, to end at $27.61.

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Google Video | October 28, 2008

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